S/R Emini Journal

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Quote from YMZ:

As a new member to ET I have begun reading through this thread and have been really impressed with how genuine and helpful the posts seem to be. I suspect that there are many readers who have an interest in trading breakout and S/R but who choose not to post here. I also believe many people give trading a try and jump from one method to another in search of the perfect system. They will read this thread and give it a try. When they suffer a drawdown for 2 days in a row they will become convinced that the system does not work and move on.

I though it would be neat to do the following: I will do my best to follow this system within the guidelines that have been graciously outlined by 4re and the other experienced posters. I will post annotated charts of the trades (on paper) I take so that new traders can see the trials and tribulations that everyone goes through when trying to put together or follow a new system. It is my hope that those who trade this method successfully can point out the errors in my decision making process as well as things I have done correctly. Is there anyone out there who feels that this would be beneficial? If so, I will get started on the first chart.


YMZ
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YMZ,
Thanks for stopping by and for the nice words. I totally agree with your assumption of other traders leaving after they have a couple of losing days, which will happen eventually. I also welcome you to try it and to post your results as I have said this is my discipline failure. I don't keep a notebook of my trades. I haven't done that in years. I just look at my monthly statements and compound accordingly.

If you need any info regarding not only my entries but my exit strategy just let me know. I am happy to provide everything for this purpose.

Thanks again,
Gary
 
Quote from boro45:

Que pasa?

I had to leave town unexpectedly but back now and thinking that I haven't missed much of anything. Anyone else ready for the summer market to be over?
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Good to see you back. You haven't missed much. I have had only 2 trades this week. Both of them on Wednesday...
 
Quote from volente_00:

10:30 reversal song





meet me in tha trap its going down
meet me in tha mall its going down
meet me in tha club its going down
any where ya meet me guranteed to go down
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You need to find a new song:p
 
Quote from Trader273:

You need to find a new song:p
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Every time I post it drops at least 3 points so I think it is appropiate.





But we can switch genre





And I'm free
Free fallin', I'm a-free fallin', I'm a
Free fallin'
Free fallin', I'm a-free fallin', I'm a
Yeah, I'm free
Free fallin', I'm a-free fallin', I'm a
Free fallin'
 
Thanks a lot for the detailed response Romik. I have just over $10,000 to start with. However, right now I am still papertrading while learning about charting, S/R.
I have found indicators to be whipsawed in the previous months with regard to the stock market. Would it be fair to extrapolate that conclusion to the ES as well. I am talking about oscillators like the stochastic. Aalthough I did recently talk to someone who says he makes money simply trading the stochastic cross, I had trouble believing him though.

Quote from romik:

Hi Belavia,

What you need to ask yourself is this. Do I have a system that can generate at least 1 point a day on average over and over and over, because that is all that you would require, just 1 NET point per day. Stop thinking small, that is the key here as well as having the ability to gain that 1 net point. At the moment what is your capital? That is another question. Say, it is $5,000.00, which is about average for most starting out in futures. That would mean that you can trade up-to 10 contracts ES, but that is too much risk IMO, unless you DO have that 1 net point system. BTW, 1 NET point system is not achievable through taking lots of trades, the commission will eat up your net point. so the bottom line is identifying a strong move and taking ONLY strong possibility trades, none of the 'I hope it will and not having enough justification for an entry, blah blah blah'...

Anyway, getting back to position size. 10 lots would be risky as a novice trader you WILL make mistakes and you WILL lose. The point of losing is to train your mind to never start believing that you were right making an entry at a certain level and then when price reverses on you, you still believe it's going to go your way and you end up holding on to a loser. And when that loser is 5 points down (assume your predetermined stop was 2 points), then you are down $2,500.00 or 50% of your trading capital! You don't want that so ,=my advice would be to start with 1 lot=small cash gains ("supplementary income"), but if you do end up holding on to a loser for even 8-9 points and getting a margin call and get it closed, in that case you would be down $450.00 or 9% of your capital, which is NOT good, but not as bad as 50% in a 10 lot scenario.

So I hope you understand, that whether you will make a living or simply get supplementary income from trading ES (one of the most liquid instruments) depends on your capitalisation. I am not referring to the insides of the actual success, just to lack of range at certain times.

Don't forget, if you can show investors that you can generate 240 net points per year, you will have many people that would want to give you their money.

All you need now is to develop a system, that would either identify large moves when they do happen and you would get 5 points or a system that would provide you with 1 point per day on average, mine is the latter.

All the best!
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